Technical Analysis of EUR/JPY for March 29, 2016

The market has hit the supply zone between the levels of 127.09 - 127.26. However, the wave progression inside of this upward structure does not looks too impulsive so far, more like a zig-zag structure. If the market breaks below the intraday support at the level of 126.45, the bears will be in control over this market. Nevertheless, the alternative count suggests that the correction might be complex and time-consuming, but it cannot violate the 123.07 level. If it does, the alternative count will be in play, which suggests more downward wave progression towards the 122.06 level.

Support/Resistance:

126.42 - WR1

126.09 - 126.26 - Supply Zone

126.45 - Intraday Support

126.04 - Weekly Pivot

125.54 - WS1

124.67 - Local Low

124.18 - WS2

123.69 - WS3

123.07 - Green Impulsive Cycle Invalidation Level

Trading recommendations:

Day traders should put trailing stop loss orders on the long positions from the 123.00 area that are still in play and wait for the market's reaction at the supply zone. Any breakout higher might be another impulsive wave development towards the level of 128.18.

The material has been provided by InstaForex Company - www.instaforex.com